Soybeans Slump to Six-Week Low on South America Outlook

Jan. 2 (Bloomberg) -- Soybean futures fell to a six-week
low on speculation that South America will harvest a record crop
this year and boost exports. Corn dropped.

A unit of the U.S. Department of Agriculture said today in
a report that Brazil will harvest 83 million metric tons this
year, surpassing the U.S. as the world’s largest grower and
exporter. Rain expected in the next two weeks may boost yields
in Brazil, while dry weather in Argentina firms muddy soils for
farmers to finish planting, Overland Park, Kansas-based World
Weather Inc. said.

“South American weather remains very conducive for
reaching current USDA crop forecasts,” Greg Grow, the director
of agribusiness at Archer Financial Services Inc. in Chicago,
said in a telephone interview. “Harvesting is just beginning in
Brazil and will increase available supplies.”

Soybean futures for March delivery dropped 1.2 percent to
close at $13.9225 a bushel at 2 p.m. on the Chicago Board of
Trade. Earlier, the price touched $13.8625, the lowest for a
most-active contract since Nov. 20. In 2012, the oilseed rose 17
percent after drought cut U.S. production to the lowest in four
years.

In Argentina, output may jump 34 percent to a record, the
USDA said on Dec. 10.

Corn futures for March delivery fell 1.1 percent to $6.9075
a bushel in Chicago. Earlier, the price touched $6.8775, the
lowest since Dec. 20. Last year, the grain advanced 8 percent,
the fourth straight increase.

In the U.S., corn is the biggest crop, valued at $76.5
billion in 2011, followed by soybeans at $35.8 billion,
government figures show.